The Dollar starts the week under pressure and has seen some sizable losses over the last two trading sessions. Economists at ING expect the US Dollar Index to fall as low as 102.00.

Emerging currencies fly

“We suspect investors will be looking to add to positions in EM FX and the commodity complex this week. The Chinese Renminbi is enjoying strong gains and Asia's high beta Korean Won is flying. It seems very hard to fight this trend – especially in the second week of the year when money is being put to work.”

“Were US two-year Treasury yields to drop below the 4.10/20% area this week, we would expect another decent leg lower in the Dollar.”

“The recent DXY low at 103.45 looks vulnerable and 102.00 now looks to be the direction of travel as US recession fears build.”